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Required information [The following information applies to the questions displayed below. Peng Company is considering an investment expected to generate an average net income after
Required information [The following information applies to the questions displayed below. Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. The investment costs $57,900 and has an estimated $7,800 salvage value. ssume Peng requires a 15% return on its investments:Compute the net present value of this investment. Assume the company uses straight-line depreciation. EPV of $1E FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.) Amountx PV Factor- Present Value Cash Flow Select Chart Annual cash flow Present Value of an Annuity of 1 Residual value Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value
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